Kenyan electric mobility startup ARC Ride has secured $33.3 million in new financing as it prepares to expand its electric motorcycle and battery-swapping business across Africa.
The funding combines a $23 million Series A round with a $10 million debt facility. The equity round was led by Novastar Ventures and Norrsken22, with participation from the International Finance Corporation, British International Investment and Proparco.
ARC Ride operates a battery-as-a-service model designed to reduce the cost and inconvenience associated with switching from petrol motorcycles to electric alternatives.
Instead of waiting for batteries to recharge, riders can exchange depleted batteries for charged ones at swapping stations.
The company plans to use the new capital to expand its operations in Kenya and enter additional African markets, including Uganda, Tanzania, Ghana and South Africa.
Proparco said its investment would support the deployment of about 5,000 electric motorcycles and related charging infrastructure.
The company estimates that its expansion could create more than 300 direct jobs and nearly 2,900 indirect jobs over time.
ARC Ride’s fundraising comes as investors increasingly turn their attention to climate-focused businesses across Africa.
Transport is a particularly important part of the transition because motorcycles and three-wheelers are widely used for passenger and goods transport in many African cities.
For riders, the economics of electric motorcycles could be equally important. Lower energy and maintenance costs could help reduce daily operating expenses, while battery swapping addresses the range and charging concerns that can discourage adoption.
The challenge now is to build enough infrastructure to support a larger electric fleet.
For ARC Ride, the latest funding provides an opportunity to move beyond Kenya and position battery swapping as part of Africa’s emerging clean-transport infrastructure.
